Social Security COLA Increase For 2023
The SSA will announce the COLA increase in late October. Who can request it and how can it be done?
Every month , the Social Security Administration (SSA) issues millions of payments to the program’s beneficiaries , the majority of whom are retired workers and disabled individuals eligible for Supplemental Security Income (SSI) .
The amount that each person receives has to do with various personal factors , however, every year it rises thanks to the increase in the cost of living adjustment (COLA).
With the COLA increase, SSA ensures that monthly insurance payments are matched to next year’s inflation. In this way, purchasing losses are avoided for the beneficiaries when inflation rates are high.
The COLA is calculated based on the Consumer Price Index for Urban Salaried and Administrative Workers (CPI-W) for the third quarter of the year. If the CPI-W is very high, the COLA will also be high.
Social Security COLA Increase: Who Can Apply and How to Apply?
Anyone who receives payments from the Insurance will be able to see this increase from the first payment corresponding to the year 2023. There is no need to do any extra paperwork since the SSA is in charge of making the increase in payments automatically.
Taking into account that the COLA is linked to inflation, a projection by the Senior Citizens League (TSCL) foresees that the payments will increase by around 9.6 percent by 2023. With this, the average payment of a beneficiary would rise from $1,657 at $1,816 dollars. If so, this would be the highest increase in history.
Although this increase means more money, the truth is that the beneficiaries will not see a great impact due to the increase in the prices of products and services. The SSA will announce the COLA increase for 2023 at the end of October.